ICTSI jacks up 2016 capex to $420M

International Container Terminal Services Inc. (ICTSI), a global seaport operator led by billionaire Enrique Razon Jr., is increasing spending this year to expand its presence overseas.

ICTSI said in a stock exchange filing on Tuesday that capital spending for 2016 would hit $420 million, up from $353.5 million that it spent last year.

The company said this year’s budget was allocated for new container terminals in the Democratic Republic of Congo and Iraq, and the continuing development of its project in Australia. Of this amount, it said $60 million was allocated for its share in a container terminal venture in Buenaventura, Colombia.

Last year’s spending partly went to the completion of new container terminals in Mexico, Honduras and Iraq as well as capacity expansion in its terminal operation in Manila.

ICTSI outlined spending plans as it disclosed yesterday that profit last year slipped 68 percent to $58.5 million citing one-time adjustments and non-recurring charges.

Without these extraordinary items, ICTSI said recurring net income would have increased by 1 percent to $174.7 million last year.

In 2015, the company recognized non-recurring charges amounting to $116.2 million mainly on impairment charges on the concession rights assets of Tecplata S.A. (TECPLATA), its terminal in Buenos Aires, Argentina, amounting to $88 million, and the goodwill of subsidiaries PT ICTSI Jasa Prima Tbk and PT OJA in Jakarta, Indonesia aggregating $26.6 million.

ICTSI said revenue from port operations during the period slipped 1 percent to $1.05 billion.

It said this was mainly due to unfavorable container volume mix, lower storage revenues and ancillary services, and the negative “foreign exchange translation impact” on several of its ports around the world.

ICTSI handled consolidated volume of 7.78 million twenty-foot equivalent units (TEUs) for the year ended Dec. 31, 2015, up 5 percent.